lou: good evening i'm lou dobbs after a week of rocket attacks from gaza and targeted airstrikes in response from israel, a truce has been announced between hamas and the jewish state, hamas launching more than 1300 rockets to southern israel last width. -- wednesday, 5 people kill. 200 wounded. >> israel retaliating with more than 2000 targeted airstrike, israeli defense ministry confirming 19 hamas senior come centers, and 30 op

practicetives, and funnelling tunnels were destroyed much operation pillar of defense lasting 8 days, and conflict coming to an end for the time being, a ceasefire com commencig just a few hours ago that the prime minister be benjamin thate nat warns needenetanyahu warnin. >> the army is ready when needed. the state of israel has to try to achieve a ceasefire which will be continuous. >> tha netanyahu added he agreeo give the ceasefire a chant after speaking with president obama. secretary of state clinton announced the ceasefire at a joint press conference with the egyption foreign minister,

secretary clinton praised egyptian president, and muslim brotherhood member morsi for brokering the mosque. that is considered a terrorist organization by the u.s. government, of course. >> i want to thank president morsi for his leadership in ending the violent, this is a critical moment for the region. egypt a new government is assuming the responsibility and leadership that has long made this country a cornerstone of regional stabilitiy it peace. lou: the ceasefire hours after a bomb tow through a bus in israel's defense ministry in tel aviv, it injured at least 2 dozen people, hamas leaders praised the attack but did not take out right responsibility. a damascus based group with ties

to the west bank took credit. the israeli government confirmed this is only the first stage of a ceasefire agreement work many questions remain stock answered. a second set of negotiations reportedly to begin within the next 24 hours, israel's blockade of the gaza border, and an end to the flow of arms in to gaza to be negotiated. but perhaps, a bigger question, did secretary of state, hillary clinton, simply rubber-stamp an agreement that has already been negotiated. we take all of this up here tonight with a number of experts and insiders, fox news middle eastern affairs analyst, dr. waleed farris, and eli lake, and new york times best selling author ed klein. and hank shine coff on politics of it all, it will hold?

will it result in real change? will it last? jennifer griffin is with us now, lived and worked in the region, and joining us now live from the pentagon, thank you, let me begin with a straight forward question, would this deal have happened with or without secretary of state clinton. >> this is a good question lou, answer is yes, and no. remember that 24 hours ago, hamas had agreed to this ceasefire. the egyptians convinced them on agree, and many of us were expecting ceasefire at 9:00 p.m. local time, 24 hours ago. it happened 24 hours later, remember, secretary of state clinton was landing at about that time in jerusalem. and israelis wanted to see if perhaps she could, come up with a few more perhaps agreements from the palestinians, she went to ramallah and i am told she

appealed to the president, mahmoud abbas. the palestinian president, who has no real bearing on the situation in gaza. but she appealed to him not to about on november 29 to the u.n., and seek observer states for you palestinians that would be a back-channel way to achieve statehood. i am told that he did not agree to that shetion went to cairo, where the one thing she did achieve is she got the egyptian president, mohamed morsi to be the address if hamas breaks the ceasefire and begins firing rockets into israel again, that egypt will be responsible, and will be held responsibility, they have taken responsibility, but this is a verbal agreement, this is not a written agreement, there is no implementation mechanism in place, this is really just a cooling-off period. to see if negotiators can really get at the root issues that are the smuggling tunnels for

weapons coming in to the gaza strip, many from iran and the sinai desert, and whether hamas will be disarmed in the end. lou: the stubborn choice for both, palestinians and the israelis, the right to govern themselves, versus the right assurance guaranteed security. how surprising is it, to you, that israel would agree to this ceasefire on the same day a bomb goes off in tel aviv? >> well, it was quite surprising to me, lou, last time there was a terror attack in tel tel avivs who, 006, was in 2006, i remember, i was covering those bombings, so, usually what would happen after such an incident, israel would respond, that is what they believe is their largest deterrent, for several hours later for a cease-fire, there were many ske sceptics in israel suggestioning this would

be perceived at weakness in palestinian areas, and hamas of -- was beingel vated by this agreement, from an underground terror group to essentially the spokespeople for the palestinians. lou: we moved well beyond at least in this instance the point where u.s. is not a party to soar supportive of negotiating with terrorist who is what the u.s. government considers hamas to be, jennifer griffin thank you. >> and now for more on the ceasefire, the implications for the united states and region imjoined by fox news middle east analyst, dr. waleed farris. and we waleed, let me begin with you, the idea, that jennifer griffin just reported, iran looks like a winner.

president morsi of egypt looks like a winner he of and prime minister netanyahu did not look like a happy man. as he was talking about the prospects for an enduring ceasefire. your reaction to what looks in these early hours, 5 hours, just over, since the ceasefire went into effect. >> lou, i agree with this assessment in general terms, a ceasefire is always good for the civilian population on both sides, having said that, what israel got, what netanyahu government government from this agreement, yet to be implemented is, the return to the states kuo. he did not get as it was projected, a disarming of hamas or a push back against hamas or an international guarantee, not an egyptian but a international for anti. the winner, as you said on one hand immediate windsor president

morsi, his victory will be a political and diplomatic one of words of secretary clinton and other commentators are clear, he will have more -- in the u.s., when i look at, it has been framed as the stabilizing force in middle east, and what comes with it also it next debate about foreign aid to egypt, who will contribute side now morsey in washington, including congress about foreign aid. shy the guarantor of this agreement, and last, iran will emerge as a long-term victor of this because iran is arming hamas, iran is moving to make sure that issues would be deflective from syria to gaza, so the long-term victor is iran, immediate term viktor is morsey and hamas. lou: eli, is there with this ceasefire, perhaps seeds of greater violence? i mean, there is about iran, sense they have benefitted, they

have won an advantage in this short-term, we'll see where it leads a ceasefire there is also, the new strength in standing of morsi, so long as he can hold it together. this is a shift, that we've not seen before. your thoughts? >> well, my sense of it is it, that netanyahu in some ways is a winner, he does not have to go into what i think is a no-win situation for a landi land invaf gaza, at this point, any prolonged house-to-house fighting for israeli defense forces is a lose-lose, if israelis achieve military objective spec and eliminate the rocket they have the nightmare still of a lot of dead gazans. so --

>> don't you think -- >> i think in some ways anything opportunity for him not to have to go in to prove to his own people he got something, and he can say, the top commanders for gaza military wing of eliminated, they will still continue their freedom of movement. what they call their hamas supply network, that is going to continue. israel has never had this that kind of nod and a wink from u.s. before in terms. operating this that way, i engine some ways netanyahu comes out ahead. lou: and the idea, that -- were disgust over the last 8 days, whether or not netanyahu would call for a ground operation, in gaza. with urban fighting, which is the most costly form of battle. that was necessarily the default

option of the israelis, they have demonstrated through the targeted airstrikes they can effectively, not surgically, but a far more sophisticated audience for what is occurring now. in gaza. particularly after israel took so much fire from hamas, your thoughts on whether or not the next step would be a ground operation or a continuing and intensified airstrike. >> all depends on hamas, inraise has no interest in resuming activities. if hamas, and their allies would decide not to, would decide to take advantage of this the agreement today, for example, the head of hamas, and secretary general of islamic palestinian jihad were holding a press conference not in damascus or in

qatar but in quire, that is changing everythin--cairo that e in middle east, my concern, while in reality israel will not change the blockade, there is one missing link, the border 20 egypt and gaza, and all inkit kates all jec -- all indicates and all projects that president morsi will use the human political argument. lou: final quick question. because to give up control of that border would be in mines of many, a strategic mistake on the part of netanyahu, what do you think the future holds. >> i think at this point morsi himself has to chose between being a responsible player and a

responsible leader continuing to partner with united states or whether he will follow path of political islam, and the muslim brotherhood that is his party, when he was outside of government, he was a muslim brotherhood person, nowy iy shes in the chair he has been unito come out somewhere around where mubarak was. so far he has not made that choice. lou: it is arguable he has potential to move to a standing, status that even a historic ro role, as was enjoyed by anwar sadat, we'll see, is only 5 hours and counting into a ceasefire, wa lead, and eli thank you. lou: we'll have much more on the ceasefire agreement throughout the broadcast. >> the benghazi go cover-up, who changed talking point? it was not him. and then he said, well, it was.

katherine harrage with a live report. >> and black friday starts tomorrow, will a robust holiday retail season give a sluggish economy a were needed boost? we'll talk with moody's chief economist, john lonski, next. want to try to crack it? yeah, that's the way to do it!

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lou: the chief economist of moody's capital markets will be with me in a moment, before we go to john lonski we look at tonight's money like, stocks closing at a two-week high before this thanksgiving day. the dow up 48 points, s&p up 3, and nazdaq up 10, volume very light day of trading. 2. 6 billion shares, lowest trading day on the big board

since veteran's day, it is easy to lose track of the markets looking at them day-to-day, we bring you perspective here, last year on 25 of november, market hit 52-week low. how about that for system itry. and market made progress sense then, not always has it felt like it. the dow up 14% over the last 52 weeks, s&p and nazdaq both 20% higher. take that bears, joining me now, john lonski, chief economist for moody's capital market, great to have you here, looking at these numbers, year-on-year, that is pretty good. >> what fiscal cliff, right now we're up by 12% from our 12 month low. in terms of a month long average that is pretty good, investors are not as frightened as they were some days ago regarding

possibility of higher taxes, for capital gains and dividend. lou: they are still in prospect, all of it is. we have folks introducing bills to defer the whole thing for a year now. and the president is making nice, he is talking with ceos, seeming leally almost every othr day. >> market thinks we have a kinder and gently barack obama, who knows that might be correct. but who knows, business sales show no signs of improving sig 1/2 cannily, we'll issue watching what happens this week into start of the holiday shopping scene very closely. lou: at what point do we just acknowledge we're sort of you know bumbling along, economically, that the markets are outperforming the economy. and if we look at this right now, there is a project here

that from index of leading economic an kate or to market's behavior that says we have good things in store here 6 months down the road. >> equity can live with 2% gdp growth provided short-term interest rate r remain close to 0%. >> then, bernanke says, 2015. >> and he is -- going to step up and be willing to purchase treasury bonds in the event that yields move to high. lou: yele curve will be so flat it will be hard to resist. >> we no longer have bond market vigilante because of the fire power of federal resafe, if the equity market believes that credit market well retained.

why not? lou: housing recovery? southed from every corner of the country, recovery. are you satisfied? >> well, you know, have to realize percentage increases are impressive, however they are off of a low base, we're looking at a level of housing start ino. that was something like 40% under, what it average from 1993 through 1997. so, yes, it is good news, that housing is improving but, make no mistake, housing remains a shadow of its former self. lou: john lonski thank you for being here. >> thank you. lou: have a happy thanksgiving. >> you too. lou: and coming up, susan rice, who told her to do that? who gave her the talking point? was it the cia?

was it -- well we just found out. it was one of the people who said he didn't, fox news correspondent katherine harrage has the answers, and a look at some of the contradicts in her live report here next. ♪

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lou: now to escalating show down between republicans and obama administration over its response to deadly terrorist attack in benghazi. u.s. ambassador to united nations susan rice weighed in on her controversial remarks on benghazi just a short time ago, joining us now is fox news correspondent katherine harrage. >> thank you lou. the ambassador to u.n. took the

questions it was really quite unexpected she got two on the ben been scandal. and here is her response. >> when discussing the attacks against our facilities in benghazi, i relied solely and scarily on the information provided to me by the intelligence community, i made clear that the information was preliminary. and that our investigations would give us the definitive answers, everyone, particularly the intelligence community, has worked in good faith to provide the best assessment based on the information available. >> reporter: tonight this comes less than a week after a classified session on capitol hill where fox news was told james clapper, head of u.s. intelligence community of definite his team did not make controversial changes to the talking points on benghazi provided to rice, critics say that changes including stripping

out word al qaeda and had affect of minimizing roll are terrorism but now went last 24 hours, clap are's officclapper's office saiy reversal and said they were responsible for those changes. and adam shift said, to anyone listening it was clear from general petraeus, and other officials to testified last week, talking points were ammended to protect classified sources of information. and not subject to any political spin, now clapper must explain genesis of the statement about attack which was blamed on this video and a demonstration eye jacked by terrorists. >> i think wha clapper has to sy whether he add vacated the youtube video theory, whether he pressed it on the white house, if so, did he did it at the direction of the white house, that is something we need a lot more testimony bgiven that he is

flatly contradicted what he told congress last week. >> reporter:since this reversal, on the statements we've made requests to his office, for comment but our calls have not been returned, lou. lou: catalina, that is a remarkable development on this thanksgiving eve. for suddenly ambassador rice to want to stand before cameras and microphones, and set the record straight, the timing curious, what do you think? >> you hit on a very important point, if we lock at the time could went last week, thursday, we had a capitol hill the unprecedented classified or closed briefings where nation's top intelligence officials, and law enforcement officials were broughting in, including james clapper who is overall manager of the intelligence quality, -- community and cold lawmakers -- told lawmakers he did not know who was responsibility for the

stripping out, and he promised an answer this monday this week, a reversal from clapper's was on saying they were the one that made the statement, 24 hours later ambassador rice saying she got her information, that this problematic information, from james clapper's office. and all of this, as you note is going to get buried on a holiday weekend, when many americans are travelling on the road, and they are not pay attention. to this media and the developments. lou: well katherine we know one thing, it will not get married because of your excellent excellent reporting here on fox, colleague jennifer griffin, you both outstanding work. we appreciate. i want to point out one thing to audience, your reaction, this would make by my account the fourth reversal conhav contradi, by the obama they have reversed themselves on a specific point, clapper, you

identified, and head of the central intelligence, agent, david petraeus, reversing his senate intelligence committees, susan rice, talking about a preliminary nature to what were emphatic statements when it came to her appearances on the 5 sunday talk shows, and of course, president obama, who has to this point, not since thesed, if you will, his statement that one, that it was not a terrorist attack, it was about the point was the viewing by arab world of that youtube video. and then, contemporary usually, he said from outside, a terrorist act, your thoughts? >> well, you laid that out in a clear, and concise way, because this is say very complex story that has evolved.

i would say there is one final point, or two final points, to look at, number one, by september 14, three days after the attack, fbi agents had gone to germany, they interviewed diplomatic security agents who were at conchat o consulat on tf ththe attack, they told them, there was no demonstration, once you have to data point, the theory that this was a demonstration out of control, unravels that did not make it into susan rice's statement two days later, and final point, i believe we need to understand whether the fbi confronted paula broad wea-- bought broadwell, is important to note whether he know he was a subject of a fbi investigation, and whether this impacted his performance during that time. lou: ca katherine thank you very

much. >> we'll have more on the benghazi cover-up, here later, we'll take it up with the a-team next. >> a ceasefire agreement in middle east? secretary of state, arrives just in time to -- shall we say take credit. but how long will this ceasefire last? the a-team is here, lizzy mcdonald, doug schoan and jerry jacoby us. >> happy thanksgiving but what about the union that took down the 2 twin key, we look at why some unions may be in decline. america's congressional leaders 40 days to avoid fiscal cliff, republicans ac like they are willing to give in on taxes, what is the president going to do? what is his big com compromise. >> ed klein, joins me next.

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lou: well joining us now to analyze the obama administration's shifting contradictory statements about benghazi and development in middle east, cease fear, and the thought of the looming fiscal cliff, author of the amateur, a book on the inside of the obama administration, ed klein. veteran political consultant, and strategist hank shin and goo have you here. starting with you, idea has kit rip just reported that thanksgiving eve, ambassador rice makes herself available to the press, what is she doing? >> trying to get it back, from intelligence services. always the bottom less hole no one can find the answer to, then she'll run away from that as well. lou: it appears, she is trying

to maintain or standing as nominee are in hillary clinton's job. >> throw the 30 som dirt someple else. , because what they are saying is we want her. lou: do you think they are pushing through despite all of the warnings? >> i do, i think that susan rice does not appear before the press, without barack obama and valerie jarrett saying, go ahead and do that. we want you to do that. and reason they want her to do that, i think that president is convinced and determined to nominate her for secretary of state job. lou: all this, what i consider to be utter nonsense, emanating from various quarters of democratic party. officialdom, and you know she

made false statements to the american people, everyone agrees on that, but, the idea that there has not been from the republican party, as much animation and energy, in describing, the contradictions, and lies of david petraeus -- clapper, james clapper, the president himself for crying out loud, these are direct. contradicts, yet she takes the brunt of it to what degree is there on the part of the republicans some culpability for not being as aggressive in their condemnation of the statements of those officials ? >> they are not aggressive enough. but other side is they will not -- why do they put her up front? after results of this elect, and polling data, we all know that republicans cannot afford to attack women, especially black women, so why not, they get away

with it. lou: do ark agree? you agree? >> this reminds me for one of my favorite movie, the guide to the mary man, if you get caught, deny, deny, terry thomas, he is in a segment his wife comes in catches him with a woman in bed, and she said, what are you doing with this woman, he said what woman, the wife said that woman, he said i don see don't see a e said that woman, he said there is no woman this this room, the woman gets up and leaves, and she says that woman, he said there is no woman in the room, this is it, they don't know what to do in this obama administration knows what to do when it comes to credit for a ceasefire, hillary clinton jets in this deal looks like it was baked and done, and she takes at

least a pro portional credit. >> she comes out a big winner, whether it was baked, cooked or not, she leaves office of sear secretary of state with a great she looks terrific. >> people have forget know what these 16 or whatever number of young republicans, present themselves to base in primary campaign, what kind of people are voting? the same republican base, and i think that base is filled going to -- still going to behand there will somebody purity among the nominee. >> these are just faces, now there is that business of

finding heart and soul of the folks, and party. thank you very much. >> happy thanksgiving. >> thank you. lou: well up next, hillary clinton merg emergency misto mie mission to middle east. we'll talk about that, and what it means for the middle east. lizzy mcdonald, doug schoan and terry j jacobus join us here next. @?@

lou: joining me now the a-team, lizzy mcdonald, and doug schoan, and jerry jacobus, good to have you with us, let's start, since you are -- start here, lizzy. >> yeah. lou: if we may, phys cal fiscalf

seems to have vanished. >> now the can is being kicked down a shorter road. i tell you something, the fiscal cliff, has john taylor, the economist said it was not created by martians from outer space, this is created by congress there is a break the glass, and hit the pause button plan on delay it. fantasyland, thinking -- 6 months. lou: that is one possible direction. but we do not know what the president is thinking, we know that the boehner said that any negotiation will have obamacare on the table. he is entertaining revenue increases as he puts it, tax hikes. and we still don't know what the president is bringing to the table do we? >> no, i must tell you, lizzy, i

hear you and we think about it, we may think that kicking the can down the road, as a political solution, as a economic solution that could be an armageddon. i don't want to be an alarmist. lou: well armageddon would not alarm any of us. >> looking at congress it scares me. lou: congress is a scary proposition. jerry? any indication of president's bargaining position? >> well, here congress is doing, and they are looking at, it might not be a bad idea depending on what you think your party is doing by kicking can down the road you get into a midterm election yearr so these issues will be front and center, and midterm republicans will do well. we're a right of center country. lou: did i hear you forecast how republicans are doing in

midterms? >> by kicking the can down the road, i hate that term. lou: i am taking it up with hizy mcdonald tonight right now for kicking that can. >> i am tired of the phrase too, what is a greater threat, we go over the fiscal cliff or we don't? lou: arguments too, to go over the cliff. i am not saying rational but they are about prosocktive, whole be -- provocative. analyzing the mental machinations and the intellectual intrigue that is washington tomorrow, we'll be right back.

lou: we're back with the a-team, lizzy, hostess giving it up. private media did not work. the bakers union prevails, they got rid their own jobs and 13,000 others. >> and you know, essentially what happens to hostess next? this company that you are right, was taken through a leverage buyout process. balance sheet has been underwater, mismanage am. also union to blame. but we're hearing that possibly owner of tasty cakes could buy it or private equity shop that bought pabst blue ribbon and chef boyardee could buy it as well. lou: drinkies and pbr, a great combination.

>> a letter they want to propose legislation, they are proposing legislation, that would push the whole thing back. another year. meanwhile, senator jeff sessions is upset because of the private staff level negotiation, most of it, going to on, on the fiscal cliff, he wants it to end, all out in front and public. >> staff negotiation go on all of the time, i worked on the hill long enough, that is the bulk of it. >> senator sessions that been there a while too. >> it would be great to have it out in open there is a lot of staff stuff that guess on behind the scenes, but regard to push it down the road, that is what i was talking about you will get into a midterm election year, this issue will be front and center, there are 33 democrats have to defend 20 of 33 senate seats that will be up, there is a well the at stake, which party beneficials from having it be an

elect year. lou: i'll make a forecast, if this is the issue in midterms we're in such deep trouble that would be least of our concerns. doug, let plea turn to you, benghazi, and ambassador rice coming out, this is bare knuckled transparent politics. >> it is bare knuckles and so confused what is going on, nobody can follow it hope that american media with the exception of fox news turns away, that is what is going on, there is story after story, every tells a different one. >> what is headline for american people, it seems that issue is, romney, side lost, this is an issue that obama administration gets away, but how do you suss put in a headline. >> you say 4 senior americans were killed. >> that is the problem though.

>> jim: we have. lou: i'm sorry, what? >> that is the problem, mainstream media made it an elect year issue instead of investigating the benghazi issue, so american people do not know what to think, they don't know it is important, no one is telling them so, september for except for fox news. >> and real story, here is, a administration engaged in a cover-up, second part is national media that is absolutely, denying its responsibilities, to hold accountable power, thank you very much we appreciate it happy thanksgiving. all. >> up next, viewers still not satisfied with obama administration's response to benghazi, we check the in box when we comeback, stay with us. can i help you?

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how does this thing rk? oh, i like it! [ garth ] sven's small business earns 2% cash back on every purche, everday! woo-hoo!!! so that's ten security gator right? put them on my spark card! why settle for less? testing hot tar... great sinesses deserve great rewards! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on eve purchase, every day! what's in your wallet? here's your invoice. lou: now it's time for your comments. a lot of folks communicating on the benghazi timeline. marci said that your timeline was an amazingly informative and brilliant piece of journalism. thank you for being a beacon of light in the midst of the talking points of the mainstream media. some of my colleagues here thought that i went too long on that. it turns out that the audience